Eurobond buyback deal costs taxpayers Sh7.3bn

Treasury Cabinet Secreary John Mbadi. 

Photo credit: Bonface Bogita | Nation Media Group

Taxpayers have incurred a cost of Sh7.3 billion as an incentive offered to investors for early buyback of two existing Eurobonds and issuance of longer-term replacement bonds to fund it.

The incentives are a price discount to investors who bought the country’s $2.25 billion (Sh290.3 billion) bond last week and a premium offered in the buyback of $500 million (Sh64.5 billion) from owners of the debt.

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